ScoobyWon't

I posted that link on the thread about Dave's EU speech. I think it's about time the EU audited it's books, which it's failed to do for 18 years, but has managed to be able to audit those of Cyprus and the PIGS.

dpb

I do wonder whether this little episode is designed to make/force major depositors spend their wedge

ScoobyWon't

It won't make the depositors in Cyprus spend. Some face up to 80% losses, plus the capital controls such as credit card use abroad limited to €5,000 (£4,200) a month would stop them spending massively outside of Cyprus.

Still, Cyprus could still really punish Germany's Bundesbank according to this article:

http://www.telegraph.co.uk/finance/c...is-benign.html

dpb

Swop it all for gold


While you can

SouthWalesSam

iTrader: (1)

This ‘little episode’ was 'designed' to rescue an overblown, badly-run, poorly-regulated Cypriot banking system from collapse after its two biggest banks became insolvent.

But a conspiracy theory is a far more attractive explanation to lazy, gullible, simple minds.

dpb

You really believe it's as simple as that do you

SouthWalesSam

iTrader: (1)

There was nothing simple about arranging the closure and orderly bailout of Northern Rock, HBoS, RBS/Natwest, (Lloyds), Icelandic, Irish, Greek, Italian, Spanish… banks and avoiding a run on a nation's banking system.

It looked easy because the UK taxpayer and Eurozone taxpayer just paid up and no depositor lost a single penny.

The difference is that this time taxpayers refuse to carry the can on their own and bondholders (secured creditors) and depositors (unsecured creditors) have to bear a share of the cost of the banks' collapse.

This is the shape of things to come for future bank failures.

At least it’s better than when BCCI failed!

hodgy0_2

Iceland had already used this model

Effectively telling creditors in their failed banks to "swing for it" (against the advice of the IMF world bank etc)

The UK taxpayer picking up part of the bill

Intact whilst "free market" economies of the US and the UK were socialising loses in the banks, a sort of "free market" socialism to the tune of trillions (in fact an implicit unlimited amount)

A markedly less free market economy/society I.e. Iceland took the free market approach and let them fail, and prosecuted the perpetrators to boot

They are experiencing growths rate we won't see for a generation

SouthWalesSam

iTrader: (1)

No, not the same model.

The 'Cyprus model' includes EU bailout money that means that Cypriots depositors in the failed banks get the 100k deposit protection (£85k here) they're entitled too.

Iceland, as you say, left the UK and Holland to pick up the whole bill in their own countries when two of their banks failed. We're in dispute with them for a bill of around 4Bn Euro. Let's hope that with their super growth they'll get round to paying it soon!

__________________________________________________ ______________________________________
Capitalism is alive and well and living in.... "Cuba allows citizens to buy and sell property", Raul Castro, Nov 2011

hodgy0_2

H

Yes, obviously not exactly the same - Iceland are not in the EU

But you take my point, letting creditors take the (some) pain

And personally I hope Iceland win, even speaking as tax payer who has in effect subsidised several very very wealthy friends who had a lot of money invested in Iceland, and have been fully reimbursed by you and me

SouthWalesSam

iTrader: (1)

Spot on, mate!

Any financial loss is terrible, but this is why I regard this huffing, puffing, ranting and wailing for those poor Cypriot depositors with over Euro 100k in cash as little more than rank hypocrisy.

__________________________________________________ __________________________________________________ _______________________________________
“… and then I saw a headline; ‘Chavez slaps on immigration controls as millions of USA citizens pour into People’s Republic of Venezuela’, ... And then I woke up.”, Hodgy0_2, Feb 2013

hodgy0_2

where does that come from Sam - not from me

unless I am going loopy doopy

SouthWalesSam

iTrader: (1)

No, just me having a dig at your 'end of capitalism' posts.

hodgy0_2

Aha, yes

Well I am not sure I have gone quite that far, in fact I have said on many occasions that the really interesting thing about the last 4 or 5 years is how comprehensively the "banking class" (and I use that term loosely) have driven the narrative and won the argument

But as Marx said a "good capitalist will sell you the rope, by which you hang him"

Leslie

Look to future possibilities,and beware!

Les